2.

2 Changes in Business Environment

Successful company is the company that can fast and easy adapt to any changes in external and internal environment. In the last years there have been many changes in the business world. Some of them were major changes and cut a lot of attention; some went unnoticed for the ones who are not directly affected by them. The major changes we can divide into 4 categories: changes in technology, government policies, social factors, and of course changes in economy.

2.1 Technological
Technology has a significant impact on all organizations, which can be expressed in the form of threats or in the form of new opportunities. There is almost no business that would not be affected by the changes to take at least the internal situation and the equipment of any office. The whole production process became more mechanized. Companies providing services can now easily collect and sort customer`s data in electronic data bases. Of course the most significant changes were due to Internet. Most companies would provide their services or offer goods on the official web sites. It became easier to advertise any firm on other websites.

2.2 Social
Over the last 20 years there have been significant social changes that have a significant impact on the organization. Some of these changes are: Increasing amount of work performed by people working part-time Increasing number of jobs held by part-timers Increasing number of private entrepreneurs Increasing number of employees with a higher education or who want to improve their skills. Trends that have emerged in the late 1980s and early 1990s are mainly a way of life and the family structure. These lead to increasing number of workers, early retirees, and the growth

of the elderly population. A decline in fertility and an increase in the number of older people had a significant impact on the markets of many goods and services. The "traditional" family with two parents and their dependent children was the least common type of family from a registered and unregistered married childless couples, and single people. There are a growing number of young people with significant income, which tend to active recreation. Therefore, we can expect an increase in demand for sporting goods and clothing and other textile products, increase attendance stadiums, tennis courts, etc. Benefit from these changes in industries related to the health service and social security, but others because of this will have to change the composition of its employees and to hire older people.

2.3 Political
Changes in politics may have important implications for privet companies as well as for entire sectors of the economy. The influence of political factors depends on the nature and size of the business. Here are some factors relating to the government or international level, arising from 1990: The transition of Russia and other Eastern European countries to the market economy, opening new opportunities for investment and firm performance A program of the single market of the European Union (composed of both political and economic factors) Greater involvement of the private sector in the public sector, as shown by the privatization program, offering opportunities in certain sectors or industries Reduction in military spending, which creates the problem of employment for both the defense industries, and for the armed forces.

At lower levels, a definite decision of the local administration can greatly affect the competitive environment, such as: The expected permission to build a new supermarket generalist Prohibition of traffic in some urban areas Construction of new roads

The development of housing.

2.4 Economic
Among the most important economic factors that are affecting the business environment we can high light the following: Interest rates

In the late 1980s and early 1990s there were high interest rates in many industrialized countries, especially in Western Europe, where the levels are maintained for a sufficiently long period and later influenced by the competitive environment. Exchange rates

This factor is mainly important for the businesses that are dependent on the fluctuations of the national currency. Fall in the exchange rate may be a threat and an opportunity for the organization. It can increase the profit margin and competitiveness due to lower prices of goods in foreign markets, or it can lead to higher prices for imported raw materials and capital equipment. Taxation

This factor affects the competitiveness of privet organizations and the national economy as a whole. Levels of direct and indirect tax are determined by the current and expected economic conditions in the country. Economic growth or recession

Managers have to consider not only the stages and the pace of economic growth in their own countries, but also analyze how these parameters vary in other markets that are in the activities of these managers. Economic growth can be different in different regions of the same country, and managers should also consider it.